Much attention has been given to the impact of fiscal competition on the level of public expenditure, but relatively little to the impact on its composition. Using a broadly familiar and reasonably rich model of fiscal competition in the presence of mobile capital, this paper establishes a...

This article explains how changing many structural parameters by discrete amounts affect many variables of interest when we have no explicit expressions for the variables of interest in terms of the structural parameters. Although the matrix multiplying a vector of discrete changes in parameters...